Salzgitter AG: Salzgitter Group increases its forecast following best first-half result since 2011

According to the preliminary figures for the first six months of the financial year 2017, the
Salzgitter Group reported external sales of EUR 4,616 million (H1 2016: EUR 3,968 million) and earnings before taxes of EUR 100.2 million (H1 2016: EUR 16.1 million). This performance was mainly attributable to the strong results of the Strip Steel and Trading business units. A countereffect emanated from expenses of EUR -23.1 million incurred by US dollar currency hedging (H1 2016: EUR -0.2 million) in Industrial Participations / Consolidation, as well as EUR -73.8 million in valuation effects from the Aurubis bond exchangeable into shares (H1 2016: EUR +4.2 million). The amount anticipated from the Aurubis investment totals EUR -24.7 million (H1 2016: EUR 26.1 million).

The sound mid-year result and the firming up of the gratifying profit situation of the Strip Steel and Trading business units have prompted us to increase our profit forecast for the full-year 2017.

We now anticipate:

- an increase in sales to around EUR 9 billion,

- a pre-tax profit of between EUR 150 million and EUR 200 million (previously: EUR 125 million and EUR 175 million), as well as

- a return on capital employed that is discernibly higher year on year.

Further details on the financial statements for the first half year will be published on August 10, 2017, as scheduled. We make reference to the possibility of considerable variability in the consolidated result due to the fact that the bond exchangeable into shares will mature in November 2017 - depending on the use of the option to settle the bond obligation through the delivery of shares or cash payment. Similarly, opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as changes in the currency parity, may considerably affect performance in the course of the financial year 2017.